Fed Raises Interest Rate Range Amid Global Economic Uncertainty

The Federal Reserve raised its target interest rate range to 3.75%-4.00% on Wednesday, marking a 25 basis point increase.

Fed Chair Kevin Warsh cited stronger growth, insufficient progress on inflation, and rising geopolitical risk as reasons for the move.

The Fed's updated projections show inflation not returning fully to target until 2029, while growth and employment forecasts improved.

This week, President Trump will host Chinese President Xi Jinping in Washington, with markets watching for progress on the export-control truce, new trade and investment boards, and the Taiwan arms package.